Nvidia Will Not Acquire Arm
Arm will now prepare for an IPO.
Nvidia will not acquire Arm for $40 billion, parent company SoftBank has announced. Financial Times reports Nvidia will be paying $1.25 billion to SoftBank for the unsuccessful transaction. Arm CEO Simon Segars will step down – the manager will be replaced by Arm’s head of IP Rene Haas.
"Segars has decided that at this stage of his career, the time and energy required to take the company public and everything around that was not something he wanted to sign up to," Haas said. "So he’s going to step down. I’m going to take over for him."
Nvidia announced the plans to acquire Arm back in September 2020. The goal was to mix its expertise in artificial intelligence and Arm’s vast computing ecosystem by uniting Arm's 6,000 employees and Nvidia's 13,000.
The new plan for Arm is to pursue an IPO in the fiscal year beginning April 1st. Nvidia declined to comment to The Verge, not even to confirm or deny that the deal had fallen through. SoftBank and Arm didn’t immediately respond to requests for comment.
The deal was reportedly shut down because UK, EU, and US regulators were worried about a potential market situation after the acquisition. What do you think about the news? Share your thought in the comments. Also, don't forget to join our new Reddit page, our new Telegram channel, follow us on Instagram and Twitter, where we are sharing breakdowns, the latest news, awesome artworks, and more.
